Sun. Sep 19th, 2021

Credit: livemint.com

  • Bitcoin has managed to beat the stiff resistance of $35,000 and since then has rallied higher. The crypto asset now has key supports at $28,800 and $31,000 and may face resistance at $40,000 and $42,500 levels

Bitcoin rallied towards $40,000 level on Monday and hit a six-week high in the process, driven by speculations that Amazon may soon allow customers to make purchases using the world’s biggest cryptocurrency.

The digital asset has witnessed an uptrend over the past couple of days as it skyrocketed from $30,000 to $35,500 levels. At around 2pm IST, Bitcoin traded 9.7% higher at $38,036.37, moving in a range of range of $33,934.31-39,571.60, as per CoinGecko. The crypto asset is some 40% lower from its all-time high of $64,804.72.

“If true, Amazon would join the likes of Tesla and Twitter in being bullish on crypto assets such as bitcoin being the preferred mode of payment in the future. Having bounced back sharply from the key support level of $30,000 earlier, BTC has seen a strong price surge over the weekend driven by renewed optimism of BTC gaining traction as a legal tender,” said a CoinDCX spokesperson.

Bullish comments by Twitter CEO Jack Dorsey and ARK Invest CEO Cathie Wood have also added to the positive sentiment.

According to ZebPay Trade-Desk, Bitcoin has finally managed to beat the stiff resistance of $35,000 and since then has rallied upwards. The crypto exchange said volumes have been building up gradually as institutional investors seem to be building their positions at these levels.

“Technically on the daily time frame, the asset has made a ‘bullish engulfing’ pattern and has surged almost by 35% making higher high higher low formation. Bitcoin has faced stiff resistance around $40,000 to $42,500 multiple times in the past. Hence to further rally, the prices need to trade and close above $42,500,” said ZebPay.

The asset has key supports at $28,800 and $31,000 and may face resistance at $40,000 and $42,500 levels.

Avinash Shekhar, co-CEO of ZebPay, who is bullish on the fundamentals of Bitcoin, said price fluctuations like this are just a sign of an early market and it’ll be stabilized once the market matures. “When we say we are bullish on bitcoin, we are looking at the future potential of this asset and the strong fundamentals it holds. Also, if you look at the larger time frame, these small price fluctuations would be invisible and that’s why we recommend investing in bitcoin for the long run,” he added.